Still, the number is heartening considering it’s nearly 10 percent more than in 2011. Last year also marked the first time since 2007 the dealership broke the $20 million mark.

Revenue fell in 2008 by more than 20 percent as the recession took hold.

Outpacing the nation

Across the Gaston area, the increase in new cars also points to growth in the auto market.

Reports through November, the latest available for Charlotte and surrounding counties, show the number of new car registrations up by 16 percent.

What’s equally important is that the region’s new car market expanded more than the nation as a whole, says Ray McKenney of Gaston’s McKenney Family Dealerships.

“We have always run ahead of the nation in this market but since the last downturn the Charlotte area was actually behind the rest of the country,” he said. “Everything fell to such low levels in 2009 and 2010.”

To see the numbers correct themselves is a good sign for dealers, but McKenney thinks it also points to improving earnings across the area.

“There seems to be a little more confidence in our market as some of our major employers have stabilized,” he says.

The dealer cites the banking industry in particular, which means jobs not just for bankers but for companies as varied as janitorial services to insurance.

Demand, price help increase

A less rosy view of the local economy can also help explain the new-car surge.

Pent-up demand is one big factor in increasing sales. The average age of a car in the market has grown so many people find themselves needing — not just wanting — something new to drive, McKenney says.

Caldwell points to the decreasing gap between new and used vehicles as another reason new cars and trucks look more attractive to buyers.

That has a lot to do with an increase in demand for less expensive used cars over recent years as consumers cut back on spending.

Fewer of those pre-owned cars on the lot means they can bring higher prices. And when the difference between a brand new ride and a used one is only a couple thousand dollars, the latest model is more attractive to buyers already committed to making a big-ticket purchase.

Manufacturers, responding to the slow economic recovery, are also turning out fewer new models, according to Caldwell.

“When new vehicle volume goes down, used prices stabilize,” he said.

Optimism about the future

Area Chevrolet dealers believe better times are coming, however. They’re saying so with remodels in advance of a requirement from Chevrolet.

Caldwell expanded his showroom to hold four cars instead of one. He hired crews to completely change the dealership’s facade and gave the inside an entirely new look.

It’s his second big building project since remodeling the service department in 2008 and 2009. That was a project he began planning just before the national economy went into freefall.

“I’ve been here 10 years and we’ve managed to increase sales over that time,” he said. “We needed to be able to do more. Is it going to make me a bunch of money today? No. But did it need to be done? Yes.”

Both he and McKenney are spending six figures on their individual projects.

“I’ve built whole buildings that cost less than this remodel,” says McKenney, who’ll “re-skin” the 10-year-old McKenney Chevrolet in Lowell and make a long list of interior upgrades.

He will agree it signals confidence on the dealer side.

“You don’t make that kind of long-term investment unless you expect things to continue to grow,” he said.

You can reach business editor Ragan Robinson at 704-869-1833.

New car registrations in Charlotte and surrounding counties

Brand; sales through November 2011; sales through November 2012; % change